FRANKFURT, Sept 29 — German bank Commerzbank has said it intends to return a total of €3 billion (US$3.4 billion) to shareholders as dividends and share buy-backs for the period of 2022 to 2024, reported dpa news agency.
To reach the target, the pay-out ratio will be at least 70 per cent in 2024, the major German lender said on Thursday.
The bank expects a pay-out ratio of well above 50 per cent for the years 2025 to 2027.
Commerzbank expects increased profitability of its businesses and, given a CET1 ratio of 13.5 per cent, a net return on tangible equity (RoTE) of more than 11 per cent by 2027.
Commerzbank said it has resumed the return of capital to its shareholders for the 2022 financial year.
In total, the bank has distributed around €370 million by dividend and a first share buy-back - corresponding to a pay-out ratio of 30 per cent.
For the current financial year, the bank aims to increase the pay-out ratio to 50 per cent.
— Bernama-dpa
